What is MedPay?
As a chiropractor for the past 14 years, I have had treated hundreds of patients who have been involved in auto accidents. A common question I am often asked in regards to insurance billing and payment of bills after being involved in auto accident is, “What is MedPay (aka Medical Payments )?”
For example many patients want to know why they should use their own auto insurance when someone else is at fault. I commonly here “I don’t want to file a claim against my insurance and have my rates go up because I am not at fault.” This is a question or response people have and is understandable, I mean health insurance is confusing enough, let alone health related auto insurance. However, MedPay or sometimes also called Personal Injury Protection (aka PIP) works a lot like health insurance claim. It is a completely separate policy that is offered on your car insurance that only covers injuries suffered while you are in your car.
The beauty of MedPay is that it only costs about $70-$90 per year for $5,000-$10,000 worth of coverage for you and each passenger in your car. Another advantage about MedPay is that it will cover you whether the accident was your fault or someone else’s fault. I have had people use it when they rear ended someone in front of them or fell asleep at the wheel. I have also seen it work for them when a deer ran out in front of them on an open highway. Although it was the deer’s fault, most deer’s do not have insurance so the injuries become your responsibility.
In Arizona, we also have a lot of people driving around without insurance, so even when you are hit and it is not your fault MedPay comes as a benefit here. Your uninsured policy will be used here for your medical bills, but they will not pay anything until you are finished with treatment. And believe me; this can take months and months to finally get the payment. MedPay helps immediately because it acts more like a health insurance policy would. The doctors just bill it like a health insurance claim and will get paid in a few weeks. This makes it much easier for you to get treatment and any special tests like MRI or CT scans that you may need.
Now you may be asking “Isn’t this what my health insurance policy is for?” Yes, your health insurance policy can be billed as well, but you will have Co-Pays, Deductibles, and limitations to which providers you can see. With MedPay it is paid at 100% in most cases. For example, if you have a $5,000 deductible on your health insurance plan you can bill them first and get the deductible satisfied, then you can bill your MedPay and it will pay the doctors. Now your bills are paid and your deductible is met without you paying any money out of pocket. If this sounds too good to be true it is not, Arizona is one of the few states that will let you bill as many insurance policies that you have.
Remember, you are paying for these policies why not use them. Now back to the question, doesn’t this count as a claim on my auto policy? The answer is no, remember this is a health policy as part of your auto policy so it is just that, a health insurance claim. Some insurance agents that are looking out for their own interests will try to get their policy holders to not use their MedPay if the accident is not their fault, they do this because it affects their claim loss ratios. You see, when they pay out MedPay claims it affects them because they had to pay the money out but not you because you paid for the policy.
And finally, if a third party who is responsible for your injuries is going to be billed they will only again pay months after you have finished with any treatment and/or doctor visits. With the MedPay you can get the care you need and your bills will be paid in a timely manner. Additionally, after the third party insurance company settles your claim (this includes paying for your bills and pain and suffering) you will have already had your bills paid so the complete settlement goes to you. In just the most common type of auto accidents, where someone is rear-ended at a stop light, having a $80/year MedPay policy can save you thousands of dollars, time, and get you the treatment you need when you need it, ASAP!
If you have any specific questions about MedPay, whether or not it is right for you, or whether or not you should use it if you are involved in an auto accident, I would encourage you to discuss this with your insurance agent. If you have been involved in an auto accident and need treatment, I would encourage you to call our office and set up an appointment to see if we can help you get out of pain and that you do not develop any long term injuries. I hope that this article answered the question of “What is MedPay”?
